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TMI Blog2017 (10) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... ause Notice ("SCN"). 2. In W.P.(C) 3793/2017 filed by Balaji Enterprises, it is pointed out that on 27th September 2016, the premises of the Petitioner was searched by the DRI officers and certain documents, two cell phones and one laptop were seized. 3. On 17th October 2016, the Deputy Director, DRI, Noida wrote to HDFC Bank, 18/20, Hindustan Times House, Kasturba Gandhi Marg, Delhi -110001 directing the freezing of the Petitioner's Account No.13927630000215. 4. On 25th October, 2016, by another letter, the Allahabad Bank, New Rohtak Road Branch informed the Petitioner that it had been instructed by the Deputy Commissioner of Custom Drawback (Port) Kolkata to "stop any transaction in (A/C No. 50286105313) and not to release any money" t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d providing information and documents. However, till date no SCN has been issued and the accounts remain frozen. 7. Pursuant to the notice issued in these petitions, replies have been filed in which, inter alia, it is averred by the DRI that certain duty free consignments of imported brass scrap were diverted to the market. The allegations as far as the Petitioners are concerned are that they purchased such duty free brass scrap for the purposes of export of the finished goods. 8. As far as the freezing of the bank account of the Petitioners is concerned, in the para-wise reply, para 7 (C) and (D) states as under: "C. The transactions from bank account were ordered to be stopped on the basis of finding of search which indicated that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r without any reference to the provisions of the Customs Act, 1962 ('Act') which permits such action. Initially, the learned counsel for the Respondents sought to refer to Section 110 (1) & (3) of the Customs Act, 1962 which read thus: "SECTION 110. Seizure of goods, documents and things. - (1) If the proper officer has reason to believe that any goods are liable to confiscation under this Act, he may seize such goods: Provided that where it is not practicable to seize any such goods, the proper officer may serve on the owner of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer." (2) xx xx xx xx xx (3) The proper officer may seize any doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, requiring the Petitioners to furnish security for de-freezing such bank accounts would be unjustified. It is always open to the DRI to conclude the investigation and issue a SCN in accordance with law. Statutory authorities have to exercise their powers strictly according to the Act under which they function. In Khaja Mustafa Kamal v. Union of India (supra), in similar circumstances, it was observed as under: "19 Once there are allegations of fraud the Revenue has a larger responsibility and duly to the public. It cannot refuse to take all steps and rest only on freezing of bank accounts of the alleged defaulters. That such an act and which is to be found traceable to different powers and of the nature conferred in the Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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